> That means nothing to the person being laid off. By not removing that restriction you're still putting the threat on the individual.
No one forced them to sign the employment agreement in the first place.
2nd, it's protection for the company. Outside of backdoor collusion between large silicon valley companies, and key hires, how often do you see non compete agreements enforced?
For your rank and file, rarely ever. Companies don't have infinite resources to sink into litigation, especially if they have to have layoffs to reduce costs.
That means nothing to the person being laid off. By not removing that restriction you're still putting the threat on the individual.